Gameskraft Lays Off 120 Employees As Online Gaming Ban Forces Restructuring

India’s online gaming sector is facing one of its darkest hours. Just days after the Promotion and Regulation of Online Gaming Act, 2025 was passed in Parliament, Bengaluru-based gaming giant Gameskraft has laid off 120 employees, citing the ban on real-money gaming (RMG) as the reason.

The layoffs, announced this week, mark yet another setback for one of India’s most prominent gaming startups, which has been battling tax disputes, regulatory crackdowns, and even an internal financial scandal in recent months.

Gameskraft Layoff

In a statement, Gameskraft founder and CEO Prithvi Singh described the move as “one of the most difficult decisions in Gameskraft’s journey.”

“It is with a heavy heart that we part ways with some of our colleagues. While this step is driven entirely by the external environment and the need to adapt to a new reality, it in no way reflects on their talent or dedication. Our respect for our people remains unchanged, and we will try our best to support them as they transition into their next chapters,” Singh said.

The company emphasized that it will extend support to affected staff, including:

• Health insurance coverage until March 2026

• Wellness services until May 2026

• Outplacement assistance to help employees secure new opportunities

While the financial cushion offers some relief, the broader industry outlook paints a worrying picture for India’s gaming workforce.

Mounting Troubles for Gameskraft

The layoffs come at a time when Gameskraft is already under immense pressure.

• In May 2024, the startup shut down its online poker platform Pocket52 after the GST Council imposed a 28% tax on the full face value of bets — a levy that has been crippling for the industry.

• The company also received a ₹21,000 crore tax demand from the Directorate General of GST, which remains under litigation. While the Karnataka High Court had earlier quashed the notice, the Supreme Court later stayed the order, leaving the matter unresolved.

• Earlier this week, reports revealed that former group CFO Ramesh Prabhu allegedly diverted ₹250 crore of company funds into personal trading, forcing Gameskraft to write off ₹270 crore in its FY25 financials.

For a company once hailed as a rising star of India’s gaming boom, the last year has been nothing short of a nightmare.

A Sector in Survival Mode

Gameskraft is not alone in this storm. The Promotion and Regulation of Online Gaming Act, 2025 has effectively banned real-money gaming across the country — a move that has left the sector scrambling for survival.

In recent weeks, several high-profile gaming startups have announced job cuts:

• Games24x7

• Mobile Premier League (MPL)

• Zupee

• PokerBaazi

Even giants like Dream11 and WinZO are now pivoting their business models, experimenting with casual gaming, e-sports, and other engagement platforms to stay afloat.

The uncertainty has cast a shadow on thousands of jobs and billions in startup investments that had flowed into India’s gaming economy over the past five years.

End of an Era?

Founded in 2017, Gameskraft built popular platforms such as RummyCulture, Playship, RummyPrime, and LudoCulture, becoming one of the biggest names in India’s RMG landscape.

But with the new law shutting the doors on real-money games, the company — like many of its peers — is being forced to restructure, downsize, and possibly reinvent its business model altogether.

For employees, founders, and investors alike, the layoffs are a stark reminder that India’s gaming dream, once seen as a sunrise sector, is now facing its toughest test yet.

The question remains: Can Gameskraft — and India’s online gaming ecosystem — find a second life beyond real money gaming?